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On the lookout for an Investment Grade Bond - Short fund? Starting with FPA New Income Fund (FPNIX - Free Report) is one possibility. FPNIX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FPNIX is classified in the Investment Grade Bond - Short segment by Zacks, an area full of investment potential. By investing in bonds that mature in less than two years, Investment Grade Bond - Short funds are focused on the short end of the curve. Fixed income instruments at this maturity level tend to have low duration risk, but they also pay out small yields compared to their longer-dated peers. Furthermore, these funds'focus on investment grade make them safer, but yields will be lower than in the junk bond category.
History of Fund/Manager
FPNIX is a part of the FPA family of funds, a company based out of Los Angeles, CA. FPA New Income Fund made its debut in March of 1969, and since then, FPNIX has accumulated about $8.70 billion in assets, per the most up-to-date date available. The fund's current manager, Abhijeet Patwardhan, has been in charge of the fund since November of 2015.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 2.5%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 3.01%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FPNIX's standard deviation over the past three years is 2.82% compared to the category average of 2.93%. Looking at the past 5 years, the fund's standard deviation is 2.56% compared to the category average of 3.23%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.39, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FPNIX has a positive alpha of 0.82, which measures performance on a risk-adjusted basis.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FPNIX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.58%. From a cost perspective, FPNIX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,500, and each subsequent investment should be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, FPA New Income Fund ( FPNIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
This could just be the start of your research on FPNIXin the Investment Grade Bond - Short category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is FPNIX a Strong Bond Fund Right Now?
On the lookout for an Investment Grade Bond - Short fund? Starting with FPA New Income Fund (FPNIX - Free Report) is one possibility. FPNIX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FPNIX is classified in the Investment Grade Bond - Short segment by Zacks, an area full of investment potential. By investing in bonds that mature in less than two years, Investment Grade Bond - Short funds are focused on the short end of the curve. Fixed income instruments at this maturity level tend to have low duration risk, but they also pay out small yields compared to their longer-dated peers. Furthermore, these funds'focus on investment grade make them safer, but yields will be lower than in the junk bond category.
History of Fund/Manager
FPNIX is a part of the FPA family of funds, a company based out of Los Angeles, CA. FPA New Income Fund made its debut in March of 1969, and since then, FPNIX has accumulated about $8.70 billion in assets, per the most up-to-date date available. The fund's current manager, Abhijeet Patwardhan, has been in charge of the fund since November of 2015.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 2.5%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 3.01%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FPNIX's standard deviation over the past three years is 2.82% compared to the category average of 2.93%. Looking at the past 5 years, the fund's standard deviation is 2.56% compared to the category average of 3.23%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.39, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FPNIX has a positive alpha of 0.82, which measures performance on a risk-adjusted basis.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FPNIX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.58%. From a cost perspective, FPNIX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,500, and each subsequent investment should be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, FPA New Income Fund ( FPNIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
This could just be the start of your research on FPNIXin the Investment Grade Bond - Short category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.